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Legislation
Employment Rights Act 1996

Crossheading Cash shortages and stock deficiencies in retail employment

  • Section 17 Introductory.
  • Section 18 Limits on amount and time of deductions.
  • Section 19 Wages determined by reference to shortages etc.
  • Section 20 Limits on method and timing of payments.
  • Section 21 Limit on amount of payments.
  • Section 22 Final instalments of wages.
  1. Cash shortages and stock deficiencies in retail employment
  2. Wages determined by reference to shortages etc.

Section 19 | Wages determined by reference to shortages etc.

From legislation.gov.uk

(1)This section applies where—

(a)by virtue of an agreement between a worker in retail employment and his employer, the amount of the worker’s wages or any part of them is or may be determined by reference to the incidence of cash shortages or stock deficiencies, and

(b)the gross amount of the wages payable to the worker on any pay day is, on account of any such shortages or deficiencies, less than the gross amount of the wages that would have been payable to him on that day if there had been no such shortages or deficiencies.

(2)The amount representing the difference between the two amounts referred to in subsection (1)(b) shall be treated for the purposes of this Part as a deduction from the wages payable to the worker on that day made by the employer on account of the cash shortages or stock deficiencies in question.

(3)The second of the amounts referred to in subsection (1)(b) shall be treated for the purposes of this Part (except subsection (1)) as the gross amount of the wages payable to him on that day.

(4)Accordingly—

(a)section 13, and

(b)if the requirements of section 13 and subsection (2) of section 18 are satisfied, subsection (1) of section 18,

have effect in relation to the amount referred to in subsection (2) of this section.

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